(Bloomberg) – Aurora Cannabis Inc., who was struggling with a silver crunch and a reduced stock price, announced the departure of its CEO, winding about 500 employees and significantly reducing its credit facility.
Chief Executive Officer Terry Booth, who founded the Canadian pot company in 2013, will retire but will remain a director on the board, the company said Thursday in a statement. The Executive Chairman Michael Singer will replace her on an interim basis.
“I look forward to being an interim CEO and acting on our short-term plans, including rationalizing our cost structure, reduced capital expenditure and a more conservative and targeted approach to capital deployment,” said Singer in the statement.
There was as much as 20.5% trading in post-market trade in New York, and a decline of 74% over the last 12 months by closing Thursday.
Aurora cut nearly 500 staff throughout the company, including around 25% of corporate jobs, he said. The target is to cut quarterly sales, general and administrative costs to a C $ 40 million to C $ 45 million range, a significant reduction from current levels.
Aurora also announced that its banking facility syndicated a C $ 360 million credit facility at C $ 141.5 million and claimed to hold at least C $ 35 million of liquidity, according to the statement. It achieved an earnings ratios which warned the analysts that it could be exceeded, and requires Aurora to achieve certain levels of positive earnings starting in the first quarter of the 2021 fiscal.
The company said it was also expected to record goodwill U $ 740 million to C $ 775 million, and C charges $ 190 million to C $ 225 million in its second quarter fiscal results. The assets are mainly impaired in Denmark and South America, the Chief Financial Officer Glen Ibbott said in the statement.
There are $ 345 million of Aurora convertible bonds due in February 2024 trading about 60 cents on the dollar, creating nearly 20%, according to Bloomberg data. As of today, the company has the remaining resource under its current equity program at around $ 200 million. He had C $ 156 million in cash at 31 December.
In addition, the company released preliminary results for the quarter ended December 31. It expects C $ 50 million to C $ 54 million to report on cannabis income net of excise taxes and return provisions. Analysts were expecting C $ 79 million revenue, according to data compiled by Bloomberg.
His full results will be released on February 13.
To contact the editors responsible for this story: Brad Olesen at [email protected], Scott Schnipper
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